Manning & Napier Advisers Inc., a New York investment management firm with $54.1 billion in assets under management, had a portfolio valued at $25.5 billion at June 30. Managers purchased 52 new positions in the second quarter, the top five largest of which are: Priceline Group Inc. (PCLN), Intuitive Surgical Inc. (ISRG), ProShares Short 20+ Year Treasury ETF (TBF), ARRIS Group Inc. (ARRS) and Republic Airways Holdings Inc. (RJET).
Manning & Napier told investors in its July newsletter that they see the risk of a meaningful correction in stock prices as “quite low.” They believe also believe, however, that markets could return to volatility if developments contradict the generally upbeat view of investors.
Therefore, managers commented:
“In portfolios geared toward investors that need capital growth, our main focus is on identifying companies that can grow in an otherwise growth-challenged global economy. We are looking for businesses that have control of their own destiny and are taking share in large established markets or are creating new markets on their own. The goal is to identify companies trading at attractive valuations relative to their growth potential. In our view, reinvestment rate risk remains the key challenge facing long-term investors that need capital growth. Investing in companies with good fundamentals and tailwinds at their back should help investors combat this risk.”
The Largest New Buys of the Second Quarter
Priceline Group Inc. (PCLN)
Manning & Napier’s largest new position is 201,880 shares of Priceline Group Inc., whose stock averaged $1,200 per share during the quarter. The position comprises 0.95% of the portfolio.
Priceline.com Inc. was formed as a Delaware limited liability company in 1997 and was converted into a Delaware corporation in July 1998. Priceline Group Inc. has a market cap of $64.95 billion; its shares were traded at around $1238.68 with a P/E ratio of 33.10 and P/S ratio of 9.0. Priceline Group Inc. had an annual average earnings growth of 54.70% over the past 10 years. GuruFocus rated Priceline Group Inc. the business predictability rank of 4-star.
Intuitive Surgical Inc. (ISRG)
Managers purchased 161,350 shares of Intuitive Surgical Inc., whose second quarter stock price averaged $397. The position makes up 0.26% of the portfolio.
Intuitive Surgical Inc. is a Delaware corporation founded in 1995. Intuitive Surgical Inc. has a market cap of $17.73 billion; its shares were traded at around $461.63 with a P/E ratio of 34.70 and P/S ratio of 8.50. Intuitive Surgical Inc. had an annual average earnings growth of 41.10% over the past 10 years. GuruFocus rated Intuitive Surgical Inc. the business predictability rank of 2.5-star.
ProShares Short 20+ Year Treasury ETF (TBF)
Managers purchased 1,312,084 shares of ProShares Short 20+ Year Treasury ETF, whose average quarterly price was $29 per share. The position is 0.15% of the portfolio.
ARRIS Group Inc. (ARRS)
Managers purchased 555,780 shares of ARRIS Group, whose quarterly share price averaged $30. The position is 0.071% of the portfolio.
ARRIS Group Inc. is incorporated in Delaware. It operates as a communications technology company specializing in the design and engineering of broadband network solutions. ARRIS Group Inc. has a market cap of $4.81 billion; its shares were traded at around $33.44 with a P/E ratio of 3715.50 and P/S ratio of 1.0.
Republic Airways Holdings Inc. (RJET)
Managers purchased 1,462,370 shares of Republic Airways Holdings Inc., whose share price averaged $10. The holding is 0.062% of the portfolio.
Republic Airways Holdings Inc. is a Delaware holding company organized in 1996. Republic Airways Holdings Inc. has a market cap of $543.10 million; its shares were traded at around $10.91 with a P/E ratio of 14.90 and P/S ratio of 0.40.